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Saturday, January 7, 2012

FREESTYLE: Broadcast By Pres. Goodluck Jonathan On Deregulation of the Petroleum Sector

Just
before you read the President broadcast which was aired this evening Saturday, 07
January 2012, please remember that organised Labour i.e. NLC & TUC's national
protests to OCCUPAY NIGERIA still stand as planned. It will commence in Lagos by 9am on
Monday, 09 January at the Gani Fawehinmi Park Ojota and other various
points in Lagos and across cities in Nigeria.

Below is our
president's broadcast. Happy Reading...

Dear Compatriots,

1. A week ago, I had cause to address Nigerians on the
security challenges we are facing in parts of the country, which necessitated
the declaration of a state of emergency in 15 Local Government Areas in four
states of the Federation. That course of action attracted widespread support
and a demonstration of understanding. With that declaration, government had
again signaled its intention to combat terrorism with renewed vigour and to
assure every Nigerian of safety.

2. The support
that we have received in the fight against terrorism from concerned Nigerians
at home and abroad has been remarkable. We believe that it is with such continued
support that progress can be made on national issues. Let me express my
heartfelt appreciation to everyone who has expressed a commitment to support us
as we strive to improve on the country’s security situation, and build a
stronger foundation for the future. The recent mindless acts of violence
in Gombe, Potiskum, Jimeta-Yola and Mubi are unfortunate. I urge all Nigerians
to eschew bitterness and acrimony and live together in harmony and peace.
Wherever there is any threat to public peace, our security agencies will
enforce the law, without fear or favour.

3. This evening, I address you, again, with much concern over
an issue that borders on the national economy, the oil industry and national
progress. As part of our efforts to transform the economy and guarantee
prosperity for all Nigerians, Government, a few days ago, announced further
deregulation of the downstream petroleum sector. The immediate effect of this
has been the removal of the subsidy on petrol.

4. Since the announcement, there have been mixed reactions to
the policy. Let me seize this opportunity to assure all Nigerians that I feel
the pain that you all feel. I personally feel pained to see the sharp
increase in transport fares and the prices of goods and services. I share the
anguish of all persons who had travelled out of their stations, who had to pay
more on the return leg of their journeys.

5. If I were not here to lead the process of national
renewal, if I were in your shoes at this moment, I probably would have reacted
in the same manner as some of our compatriots, or hold the same critical views
about government. But I need to use this opportunity as your President to
address Nigerians on the realities on the ground, and why we chose to act as we
did. I know that these are not easy times. But tough choices have to be made to
safeguard the economy and our collective survival as a nation.

6. My fellow Nigerians, the truth is that we are all
faced with two basic choices with regard to the management of the downstream
petroleum sector: either we deregulate and survive economically, or we continue
with a subsidy regime that will continue to undermine our economy and potential
for growth, and face serious consequences.

7. As you all know, the subject of deregulation is not new,
we have been grappling with it for more than two decades. Previous
administrations tinkered with the pump price of petroleum products, and were
unable to effect complete deregulation of the downstream sector. This approach
has not worked. If it did, we would not be here talking about
deregulation today. I understand fully well that deregulation is not a magic
formula that will address every economic challenge, but it provides a good
entry point for transforming the economy, and for ensuring transparency and
competitiveness in the oil industry, which is the mainstay of our
economy.

8. As a President, elected and supported by ordinary
Nigerians, and the vast majority of our people, I have a duty to bring up
policies and programmes that will grow the economy and bring about greater
benefits for the people. Let me assure you that as your President, I have
no intention to inflict pain on Nigerians.

9. The deregulation of the petroleum sector is a
necessary step that we had to take. Should we continue to do things the same
way, and face more serious economic challenges? Or deregulate, endure the
initial discomfort and reap better benefits later? I want to assure every
Nigerian that whatever pain you may feel at the moment, will be temporary.

10. The interest of the ordinary people of this country will
always remain topmost in my priorities as a leader. I remain passionately
committed to achieving significant and enduring improvements in our economy
that will lead to sustained improvement in the lives of our people.

11. I am determined to leave behind a better Nigeria, that we
all can be proud of. To do so, I must make sure that we have the resources and
the means to grow our economy to be resilient, and to sustain improved livelihood
for our people. We must act in the public interest, no matter how tough, for
the pains of today cannot be compared to the benefits of tomorrow. On
assumption of office as President, I swore to an oath to always act in the best
interest of the people. I remain faithful to that undertaking.

12. To save Nigeria, we must all be prepared to make
sacrifices. On the part of Government, we are taking several measures
aimed at cutting the size and cost of governance, including on-going and
continuous effort to reduce the size of our recurrent expenditure and increase
capital spending. In this regard, I have directed that overseas travels by all
political office holders, including the President, should be reduced to the
barest minimum. The size of delegations on foreign trips will also be
drastically reduced; only trips that are absolutely necessary will be
approved.

13. For the year 2012, the basic salaries of all political
office holders in the Executive arm of government will be reduced by 25%.
Government is also currently reviewing the number of committees, commissions
and parastatals with overlapping responsibilities. The Report on this will be
submitted shortly and the recommendations will be promptly implemented. In the
meantime, all Ministries, Departments and Agencies must reduce their overhead
expenses.

14. We are all greatly concerned about the issue of
corruption. The deregulation policy is the strongest measure to tackle this
challenge in the downstream sector. In addition, government is taking other
steps to further sanitize the oil industry.

15. To ensure that the funds from petroleum subsidy removal
are spent prudently on projects that will build a greater Nigeria, I have
established a committee to oversee the implementation of the Subsidy
Reinvestment and Empowerment Programme. I sincerely believe that the
reinvestment of the petroleum subsidy funds, to ensure improvement in national
infrastructure, power supply, transportation, irrigation and agriculture,
education, healthcare, and other social services, is in the best interest of
our people.

16. Fellow Nigerians, I know that the removal of the
petroleum subsidy imposes an initial burden on our people, especially the
rising cost of transportation. Government will be vigilant and act
decisively to curb the excesses of those that want to exploit the current
situation for selfish gains. I plead for the understanding of all
Nigerians. I appeal to our youth not to allow mischief-makers to exploit
present circumstances to mislead or incite them to disturb public peace.

17. To address the immediate challenges that have been
identified, I have directed all Ministries, Departments and Agencies of
government to embark immediately on all projects which have been designed to
cushion the impact of the subsidy removal in the short, medium and long-term,
as outlined in the Subsidy Reinvestment and Empowerment Programme Document.

18. Tomorrow, 8th January, I will formally launch a
robust mass transit intervention programme to bring down the cost of
transportation across the country. The programme will be implemented in
partnership with state and local governments, labour unions, transport owners,
and banking institutions, and supported with the provision of funding at
zero interest rate as well as import duty waiver on all needed parts for
locally-made mass transit vehicles, which will create additional jobs in the
economy.

19. We will keep these incentives in place for as long as it
takes. I want to assure you that Government will not rest until we bring down
the cost of transportation for our people. Let me thank the transporters’
associations that have agreed to reduce transport fares. I have directed the
Minister of Labour and Productivity to work with these associations to come up
with a sustainable plan to guarantee this within the shortest possible
time.

20. In addition, I have ordered the mobilization of
contractors for the full rehabilitation of the Port Harcourt –Maiduguri Railway
Line and the completion of the Lagos-Kano Railway Line. I have also directed
the immediate commencement of a Public Works programme that will engage the
services of about 10, 000 youths in every state of the Federation and the
Federal Capital Territory. This will create an additional 370, 000 jobs.

21. Government has taken these decisions in the best interest
of our economy, so that we not only have benefits today, but to ensure that we
bequeath even greater benefits to our children and grandchildren.

22. Let me assure Nigerians that every possible effort
will be made to ensure that we march forward, with a collective resolve to
build a Nigeria that can generate greater economic growth, create and sustain
new jobs, and secure the future of our children.

23. This Administration will aggressively implement its
programme to reposition and strengthen our economy, while paying adequate
attention to the immediate needs of our citizens.

24. I assure you all that we will work towards
achieving full domestic refining of petroleum products with the attendant
benefits.

25. As I ask for the full understanding of all
Nigerians, I also promise that I will keep my word.

26. Thank you. May God bless you; and may God bless the
Federal Republic of Nigeria.